Tata Group, an Indian multinational conglomerate, is set to complete its takeover of Wistron’s iPhone plant in Bengaluru, India by the end of April. The move is significant as it will become India’s first homegrown production line for Apple products.
With Cupertino-based Apple eyeing India as a manufacturing hub, the takeover is an essential development as it plans to shift 25% of its global production to India due to conflicts between China and the USA.
Organizational Changes and Layoffs Expected
According to reports, Tata Group has started making organizational changes at the plant. However, nearly 2,000 workers at the factory are likely to be laid off as a part of the takeover process. The plant is also expected to see attrition of around 400 mid-level employees, and four to five senior-level executives are in the process of exiting or have been asked to go.
Tata’s Plans for the Future
After the takeover, Tata Group is expected to start making iPhone 15. Currently, Wistron’s Indian plant is manufacturing iPhone 12 and iPhone 14 in its eight production lines. After the takeover, Wistron will be completely out of the Indian market as this was its only plant to produce Apple products in India.
Tata has taken various other steps to expand its business with Apple, which includes more hiring at its Tamil Nadu plant, where iPhone components are made. There are also speculations that Tata will acquire Pegatron’s manufacturing units for iPhone.
Apple’s Expansion in India
Apple’s market for products in India is estimated to be around $600 million. With the current takeover, Apple will have a dedicated production line in India, which will aid in its expansion plans. Last year, Apple announced its plans to shift 25% of its global production to India, and the company is reportedly exploring new investment opportunities in the country.
Impact on the Indian Manufacturing Industry
The takeover of Wistron’s iPhone plant by Tata Group is a significant development for India’s manufacturing industry. The country has been looking to diversify its manufacturing sector and reduce its dependence on China. The Indian government has been taking various measures to encourage multinational companies to set up manufacturing units in the country, and the takeover is expected to attract more investment.
Conclusion
The takeover of Wistron’s iPhone plant by Tata Group is a significant development for the Indian manufacturing industry. It will help in the country’s efforts to reduce its dependence on China and diversify its manufacturing sector. With Apple eyeing India as a manufacturing hub, the takeover is crucial for its expansion plans. The move is also expected to attract more investment from multinational companies, which will aid in India’s economic growth.
